Developing a Project Charter
2.4 DEVELOPING A PROJECT MANAGEMENT PLAN
To coordinate and integrate information across project management knowledge areas and across the organization, there must be a good project management plan. A project management plan is a document used to coordinate all project planning documents and help guide a project‘s execution and control. Plans created in the other knowledge areas are considered subsidiary parts of the overall project management plan. Project management plans also document project planning assumptions and decisions regarding choices, facilitate communication among stakeholders, define the content, extent, and timing of key management reviews, and provide a baseline for progress measurement and project control. Project management plans should be dynamic, flexible, and subject to change when the environment or project changes. These plans should greatly assist the project manager in leading the project team and assessing project status. To create and assemble a good project management plan, the project manager must practice the art of project integration management, since information is required from all of the project management knowledge areas. Working with the project team and other stakeholders to create a project management plan will help the project manager guide the project‘s execution and understand the overall project. The main inputs for developing a project management plan include the project charter, outputs from planning processes, enterprise environment factors, and
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organizational process assets. The main tool and technique is expert judgment, and the output is a project management plan.
Project Management Plan Contents
Just as projects are unique, so are project management plans. A small project involving a few people over a couple of months might have a project management plan consisting of only a project charter, scope statement, and Gantt chart. A large project involving a hundred people over three years would have a much more detailed project management plan. It is important to tailor project management plans to fit the needs of specific projects. The project management plans should guide the work, so they should be only as detailed as needed for each project. There are, however, common elements to most project management plans. Parts of a project management plan include an introduction or overview of the project, a description of how the project is organized, the management and technical processes used on the project, and sections describing the work to be performed, the schedule, and the budget. The introduction or overview of the project should include, as a minimum, the following information:
The project name: Every project should have a unique name. Unique names help distinguish each project and avoid confusion among related projects.
A brief description of the project and the need it addresses: This description should clearly outline the goals of the project and reason for the project. It should be written in layperson s terms, avoid technical jargon, and include a rough time and cost estimate. The sponsor s name: Every project needs a sponsor. Include the name, title, and contact
information of the sponsor in the introduction.
The names of the project manager and key team members: The project manager should
always be the contact for project information. Depending on the size and nature of the project, names of key team members may also be included.
Deliverables of the project: This section should briefly list and describe the products that will be produced as part of the project. Software packages, pieces of hardware, technical reports, and training materials are examples of deliverables.
A list of important reference materials: Many projects have a history preceding them. Listing important documents or meetings related to a project helps project stakeholders understand that history. This section should reference the plans produced for other
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knowledge areas. Therefore, the project management plan should reference and summarize important parts of the scope management, schedule management, cost management, quality management, human resource management, communications management, risk management, and procurement management plans.
A list of definitions and acronyms, if appropriate: Many projects, especially information technology projects, involve terminology unique to a particular industry or technology. Providing a list of definitions and acronyms will help avoid confusion.
The description of how the project is organized should include the following information:
Organizational charts: In addition to an organizational chart for the company sponsoring the project and for the customer‘s company (if it is an external customer), there should be a project organizational chart to show the lines of authority, responsibilities, and communication for the project.
Project responsibilities: This section of the project plan should describe the major project functions and activities and identify those individuals who are responsible for them. Other organizational or process-related information: Depending on the nature of the
project, there may be a need to document major processes followed on the project. For example, if the project involves releasing a major software upgrade, it might help everyone involved in the project to see a diagram or timeline of the major steps involved in this process.
The section of the project management plan describing management and technical approaches should include the following information:
Management objectives: It is important to understand top management s view of the project, what the priorities are for the project, and any major assumptions or constraints. Project controls: This section describes how to monitor project progress and handle
changes. Will there be monthly status reviews and quarterly progress reviews? Will there be specific forms or charts to monitor progress? Will the project use earned value management to assess and track performance? What is the process for change control? What level of management is required to approve different types of changes?
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Risk management: This section briefly addresses how the project team will identify, manage, and control risks. It should refer to the risk management plan, if one is required for the project.
Project staffing: This section describes the number and types of people required for the project. It should refer to the human resource plan, if one is required for the project. Technical processes: This section describes specific methodologies a project might use
and explains how to document information. For example, many information technology projects follow specific software development methodologies or use particular Computer Aided Software Engineering (CASE) tools. Many companies or customers also have specific formats for technical documentation. It is important to clarify these technical processes in the project management plan.
The next section of the project management plan should describe the work to perform and reference the scope management plan. It should summarize the following:
Major work packages: A project manager usually organizes the project work into several
work packages using a work breakdown structure (WBS), and produces a scope statement to describe the work in more detail. This section should briefly summarize the main work packages for the project and refer to appropriate sections of the scope management plan. Key deliverables: This section lists and describes the key products produced as part of the
project. It should also describe the quality expectations for the product deliverables. Other work-related information: This section highlights key information related to the
work performed on the project. For example, it might list specific hardware or software to use on the project or certain specifications to follow. It should document major assumptions made in defining the project work.
The project schedule information section should include the following:
Summary schedule: It is helpful to see a one-page summary of the overall project schedule. Depending on the size and complexity of the project, the summary schedule might list only key deliverables and their planned completion dates. For smaller projects, it might include all of the work and associated dates for the entire project in a Gantt chart. Detailed schedule: This section provides information on the project schedule that is more detailed. It should reference the schedule management plan and discuss dependencies
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among project activities that could affect the project schedule. For example, it might explain that a major part of the work cannot start until an external agency provides funding. A network diagram can show these dependencies.
Other schedule-related information: Many assumptions are often made in preparing project schedules. This section should document major assumptions and highlight other important information related to the project schedule. The budget section of the project management plan should include the following:
Summary budget: The summary budget includes the total estimate of the overall project s budget. It could also include the budget estimate for each month or year by certain budget categories. It is important to provide some explanation of what these numbers mean. For example, is the total budget estimate a firm number that cannot change, or is it a rough estimate based on projected costs over the next three years?
Detailed budget: This section summarizes what is in the cost management plan and includes more detailed budget information. For example, what are the fixed and recurring cost estimates for the project each year? What are the projected financial benefits of the project? What types of people are needed to do the work, and how are the labour costs calculated?
Other budget-related information: This section documents major assumptions and
highlights other important information related to financial aspects of the project.
Using Guidelines to Create Project Management Plans
Many organizations use guidelines to create project management plans. Microsoft Project 2007 and other project management software packages come with several template files to use as guidelines. Many government agencies also provide guidelines for creating project management plans. For example, the U.S. Department of Defence (DOD) Standard 2167, Software Development Plan, describes the format for contractors to use in creating a plan for software development for DOD projects. The Institute of Electrical and Electronics Engineers (IEEE) Standard 1058 1998 describes the contents of a Software Project Management Plan (SPMP). Table 2-1 provides some of the categories for the IEEE SPMP. Companies working on software development projects for the Department of Defence must follow this or a similar standard.
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In many private organizations, specific documentation standards are not as rigorous; however, there are usually guidelines for developing project management plans. It is good practice to follow standards or guidelines for developing project management plans in an organization to facilitate the development and execution of those plans. The organization can work more efficiently if all project management plans follow a similar format.